I have often argued that the purpose of tort reform is not to limit frivolous litigation (as claimed by tort reformers), but to limit valid litigation. Not too long ago, the NY Times published an article that supports my view. It discusses the effect of Wisconsin's damages cap on the ability of law firms to take cases against the auto industry. You can read the article here.
Max Kennerly has a comment on the article here, called "Tort Reform Kills."